Rainwater harvesting provides numerous benefits for households and farms across New Zealand, from improving drought resilience to reducing reliance on mains water. Yet for many Kiwis, the perceived high upfront cost remains a major hurdle. While the long-term savings are evident, the initial investment can feel daunting. 

A standard 5,000-litre tank for garden use starts at around $1,000, while larger 30,000-litre systems designed for whole-house use can exceed $3,500—before factoring in installation costs, which can add several thousand dollars. For the average homeowner, this represents a substantial financial commitment. 

However, rainwater harvesting doesn’t have to be out of reach. By exploring cost-effective solutions, available incentives, and smart system planning, homeowners can make rainwater harvesting an affordable and practical investment. 

Government Support: Grants and Subsidies 

While New Zealand does not have a nationwide rebate scheme for rainwater harvesting, some local councils offer financial incentives: 

• Auckland Council: Grants of up to $5,000 for installing rainwater tanks in existing homes. 

• Kapiti Coast District Council: Rates remission of up to $250 per year for properties with rainwater collection systems. 

• Far North District Council: Subsidies of up to $500 for rainwater harvesting installations. 

Reference A : (For citations, please refer to the References section at the end.) 

🔍 Check with your local council to see what financial assistance may be available in your area. Even small incentives can help offset initial costs. 

Phased Implementation: Start Small, Scale Up 

Rather than investing in a full-scale system upfront, homeowners can gradually expand their setup over time: 

Step #1

Start with a small rain barrel or slimline tank for garden watering. 

Step #2

Upgrade with a pump and filtration system to support outdoor cleaning and irrigation. 

Step #3

Expand storage capacity and connect the system to household appliances (toilets, laundry).

Step #4

Fully integrate with the home’s water supply for all household uses. 

Making the Investment Work for You 

While rainwater harvesting requires an upfront investment, it pays for itself over time. Homeowners should consider: 

Water bill savings – Potential savings depending on usage. 
Property value – A well-designed rainwater system can increase home appeal to buyers. 
Environmental benefits – Reduces reliance on municipal supply and stormwater runoff. 
Resilience – Provides an independent water source during droughts or supply disruptions. 

Most homeowners recoup their investment within a few years, after which the savings continue to accumulate. 

Breaking Down the Cost Barrier 

By leveraging local incentives, smart DIY approaches, and phased implementation, rainwater harvesting becomes an affordable and practical solution for New Zealand homeowners. While the initial cost may seem high, the long-term savings, security, and environmental impact make it a worthwhile investment. 

As water scarcity concerns grow and technology advances, we expect to see even more support for rainwater harvesting initiatives. For now, those who take the first step will enjoy lower bills, greater self-sufficiency, and a positive environmental impact. 

Key Takeaways 

✔ Check for local council subsidies or tax incentives to offset installation costs.
✔ Reduce costs by handling basic installation work while hiring experts for key components.
✔ Start small and expand your system gradually to fit your budget.
✔ View it as an investment – long-term water savings, property value, and resilience pay off. 

Resources :  

The following websites are the general references used in conducting the research for this article   

Reference A : 

LocalGovt. “LocalGovt.” LocalGovt, n.d. Web. 24 Feb. 2025. https://www.localgovt.co.nz/